Why ABBV stock will outperform MRK stock in the next three years.

Eshan Porter
10 mins

Why we believe ABBV stock will offer better returns than MRK stock in the next three years is discussed in more detail below.

CHINA - 2022/07/25: In this photo illustration, the American multinational pharmaceutical company ... [+] Merck logo is displayed on a smartphone screen. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
As the world's largest pharmaceutical market, China presents significant opportunities for companies like Merck. In recent years, the Chinese government has been working to improve access to healthcare and increase the availability of affordable medicines. As a result, Merck is well positioned to continue growing its business in China.

We believe that AbbVie stock (NYSE: ABBV) is currently a better pick than its peer Merck stock (NYSE: MRK), given its better growth prospects. Both companies are comparable in valuation, with AbbVie trading at 4.2x, trailing revenues, and Merck trading at 3.9x. However, AbbVie is expected to grow its revenues at a much faster pace than Merck over the next few years. AbbVie is forecast to grow its revenues by an annualized rate of 11% over the next five years, compared to just 3% for Merck. This is primarily due to the strong growth prospects for AbbVie's blockbuster drug, Humira. Humira is expected to generate revenues of over $20 billion this year, and its sales are expected to grow at a double-digit rate over the next few years. In contrast, Merck's top-selling drug, Keytruda, is expected to generate revenues of around $5 billion this year, and its sales are expected to grow at a mid-single digit rate over the next few years. Given the strong growth prospects for AbbVie, we believe it is currently a better pick than Merck.

Merck's strong performance this year is impressive, but we believe that AbbVie will offer better returns over the next three years. We compare a number of factors such as historical revenue growth, returns, and valuation multiple in our analysis, and believe that AbbVie is the better investment.

In recent years, AbbVie's revenue growth has been better than ever. The company has been able to bring in more money and grow at a faster rate than ever before. This is thanks to their great products and their

  • Looking at the sales growth of both companies over the last twelve months, it's clear that Merck is outperforming AbbVie. With a revenue growth of 30.2%, compared to AbbVie's 6.7%, it's clear that Merck is the stronger company. This is likely to continue in the future, as Merck continues
  • Looking at a longer time frame, it is clear that Merck's sales have been growing at a much slower rate than AbbVie's. In 2021, Merck's sales grew by 5.3% to $48.7 billion, compared to $42.3 billion in 2018. Meanwhile, AbbVie's sales grew by 20.6% to $56.2 billion in 2021, compared to $32.8 billion in 2018. This difference in growth rates is significant, and it shows that AbbVie is outp
  • Merck, a global leader in pharmaceuticals, has seen strong growth in recent years due to the success of its Keytruda cancer drug and its Gardasil vaccine. With demand for these products expected to continue to rise, Merck is well positioned to continue to prosper in the years ahead.
  • While AbbVie's blockbuster drug Humira has been a major source of revenue for the company, its biosimilar has already hit the European markets, weighing on the company's international sales. The biosimilars are expected to enter the U.S. next year, likely resulting in a significant drop in Humira sales over the coming years.
  • That said, AbbVie is prepared to combat this biosimilar impact with its Allergan AGN acquisition in 2020, giving it access to Botox, a multi-billion dollar product. Furthermore, its relatively new drugs – Skyrizi and Rinvoq – used to treat plaque psoriasis and rheumatoid arthritis are gaining market share. For perspective, these three products garnered $9.3 billion in 2021, reflecting a 94% y-o-y growth.
  • The AbbVie Revenue and Merck Revenue dashboards provide valuable insights into the companies’ sales. By tracking key metrics, such as total revenue, revenue by product, and revenue by region, we can better understand the overall performance of these companies. Additionally, the dashboards allow us
  • Looking forward, AbbVie is expected to see much faster revenue growth than Merck over the next three years. Our data shows that AbbVie is on track to see a compound annual growth rate (CAGR) of 8.6% over the next three years, compared to just 1.6% for Merck. This is based on our proprietary Trefis Machine Learning analysis.
  • Looking at the data, it's clear that Covid has had a major impact on businesses all over the world. However, it's also clear that some companies have been able to weather the storm better than others. For businesses that have been negatively impacted by Covid, we need to consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we need to apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For businesses that have registered positive revenue growth during Covid, we need to consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months. This will help us to get a better understanding of how these companies have been able to adapt and continue to grow in spite of the challenges posed by the pandemic.
Annual Growth Forecast - ABBV vs. MRKTrefis
Looking at the annual growth forecast for ABBV and MRKT, it is evident that the former is expected to outperform the latter. While ABBV is expected to grow at a rate of 8

Merck is a more profitable and lower risk investment than many of its competitors. The company has a strong track record of delivering shareholder value, and its products are in high demand. Merck is a great choice for

  • Looking at AbbVie's operating margin over the last twelve months, it's clear that the company is doing well compared to its competitors. However, it's important to note that AbbVie has historically seen better operating margins than its current numbers show. This suggests that the company is still in a strong position despite recent challenges.
  • It is clear that the pandemic has had a significant impact on employment figures in the United States. In 2020, the unemployment rate was 13.3%, compared with 2019 figures of 39.0% and 18.7%. This shows a significant decrease in the number of people employed in
  • AbbVie's free cash flow margin of 40.0% is significantly better than Merck's margin of 33.2%. This indicates that AbbVie is more efficient in generating cash flow and is better positioned to weather tough economic conditions.
  • Looking at our AbbVie and Merck operating income dashboards, it's clear that both companies are doing well. However, AbbVie's operating income is significantly higher than Merck's. This is likely due to AbbVie's strong focus on
  • Merck is in a better financial position than AbbVie, with less debt and more cash on hand. This gives the company more flexibility to weather any financial storms that may come its way.

Looking at the big picture, it's clear that the internet has had a profound effect on our world. It has connected us in ways we never thought possible, and has

  • Looking at the financials of AbbVie and Merck, it is clear that AbbVie is the stronger company. AbbVie has shown stronger revenue growth and profitability over the past few years, while Merck has a better debt position and more cash on hand. This implies that AbbVie is a lower financial risk than Merck.
  • Looking at the current prospects for AbbVie and using P/S as a base, we still believe that AbbVie is the better choice of the two, despite the high fluctuations in P/E and P/EBIT. The company's strong fundamentals and consistent performance make it a safe bet for investors.
  • AbbVie is expected to generate higher returns for investors than Merck over the next three years, according to Trefis Machine Learning analysis. The analysis predicts that AbbVie will return 33% over the period, while Merck is expected to return 14%. The analysis provides more details on the factors driving these return expectations.
`Stock Return Forecast - ABBV vs. MRKTrefis
Looking at the stock return forecast for ABBV versus MRKT, it is clear that ABBV is the better investment. ABBV is expected to generate a higher return than MRKT over the

While ABBV stock may outperform MRK, it is helpful to see howMerck’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.

The current Covid-19 crisis has resulted in many pricing discontinuities which present attractive trading opportunities. For example, you may be surprised at how counter-intuitive the stock valuation is for Xylem vs. Merck.

Despite inflation rising and the Fed raising interest rates, Merck stock has risen 14% this year. However, it is possible for the stock to drop in value, as seen in previous market crashes. Comparing the decline of Merck stock to the performance of all stocks in previous market crashes can give some insight into how low the stock can go.

If you're looking for a more balanced portfolio, our high-quality portfolio and multi-strategy portfolio have both outperformed the market since 2016. With returns of 175% and 262%, respectively, these portfolios offer a great way to achieve diversification and protect your investment.

ABBV & MRK Returns Compared With Trefis Multi-Strategy Portfolio Trefis
In the world of investing, it's always important to keep an eye on your portfolio's performance. After all, your goal is to make money! So how does ABBV stock compare with MRK stock, and how do they both stack up against

The Trefis Price Estimates dashboard is a great tool for investors to use to get an idea of a company's stock price. The dashboard provides estimates for a variety of different factors, including earnings, revenue, and more.

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